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Joe Fergusson
Microgeneration Consultant - Ayr Office
These are exciting times for enthusiasts of
microgeneration. Four powerful drivers are
combining to push the market for small-scale
renewable energy systems into a higher gear.
Firstly and most obviously, the heating oil
price which hovered in the low 30’s pence per
litre throughout last summer, rose to 60 pence
in mid May*. It seems to have stuck above the 10
bob mark and industry people are predicting
further big rises. Alternative heating systems
which looked too pricey last year now look a lot
more attractive. As conventional heating costs
rise, the price of alternatives such as wood
pellets and chips may go up as well but this
also results in new suppliers coming into the
market – they are doing so very quickly -and
this competition should produce a deflationary
effect and will certainly reduce transportation
costs passed on to end customers.
Secondly, the welcome arrival of the Scottish
Rural Development Programme** (see Iain Cram’s
article on page X) means that rural
organisations have access to grants for the full
gamut of microgeneration systems from solar
panels to biogas generation plants. Wood
chippers and splitters, screening and drying
equipment are also eligible. This is the first
ever nationally available grant scheme to
benefit rural businesses. Even without energy
price rises, this brings many previously
questionable projects well into the realms of
possibility. Grants may be UP TO 40% or even 60%
for some applicants in Less Favoured Areas.
This in turn will transform the feasibility of
microgeneration systems for small to medium
enterprises (SMEs) which until now have had no
support other than enhanced capital allowances
and interest-free loans. Now they can apply for
all three and, assuming they pass successfully
through the selection process, thereby get a
system for a low initial outlay and reduce their
soaring energy costs.
Thirdly, anticipation of the Scottish
Government’s decision on whether to, along with
England and Wales, double the Renewables
Obligation Certificate (ROC) eligibility for
renewable energy generators of less than 50kW
capacity is exciting more interest in hydro and
wind developments and this will also impact
biomass and biogas generators.
As an example, the simple payback period on the
50kW wind turbine (pictured), when installed
with a 50% grant and two ROCs per megawatt hour,
may fall from 20 years to eight or less. Micro
hydro schemes are similarly affected, but with
much shorter paybacks possible.
Finally, perhaps boring but important,
Scotland’s planning authorities have Planning
Advice Note 84 “Reducing Carbon
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Solar PV Rooftiles
Emissions in New
Development” to guide them in implementing
Scottish Planning Policy 6 of March 2007. This
states that “all future applications proposing a
development with a total cumulative floorspace
of 500m2 or more should incorporate on-site zero
and low carbon equipment contributing at least
an extra 15% reduction in CO2 emissions beyond
the 2007 building regulations carbon dioxide
emissions standard.” *** (see also Iain Cram’s
article on page 3)
The policy has been in place since March 2007
but its existence is likely to be more felt
following the recent publication of PAN 84. The
requirement is billed as a “material
consideration” for planning decisions and
encourages all types of microgeneration within
the perimeter of the development. To avoid it,
developers have to be able to demonstrate an
overriding technical obstruction rendering the
inclusion of such systems unfeasible.
The property industry is now running fast to
train enough people to produce Energy
Performance Certificates when they become
mandatory at the end of this year. However,
there is still a knowledge gap with regard to
how to most cost-effectively comply with this
new 15% rule. Although individual dwellings are
unlikely to fall into the >500m2 category, a
development of 3 or 4 dwellings is likely to,
and conversions are included.
Bell Ingram’s Microgeneration Department remains
extremely busy with a wide variety of projects
on estates across Scotland with recurring themes
of investigating small hydro and wind generation
potential, providing energy saving audits and
supporting the installation of wood- fired
boilers. Heat pumps and solar systems are also
represented.
If you have any queries in relation to the above
or about using microgeneration, contact Joe
Fergusson by emailing
joe.fergusson@bellingram.co.uk
or calling the Ayr office on 01292 886544.
* Source
www.boilerjuice.com/priceHistory
** See
www.scotland.gov.uk/?RuralPriorities for full details.
*** SPP6 and PAN84 can be found at
www.scotland.gov.uk/?22084213/0
&
www.scotland.gov.uk/?06133051/4 respectively.
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